How-to

Difference between compensation value and income tax computation value

Last updated June 17, 2024 · Tushar Agarwal

The "My Compensation" page shows the employee their current compensation. However, the Income Tax computation page shows the values and taxes based on actual salary paid along with projected salary.

The difference in values between the two pages can be due to two reasons:


  • Date of joining: The employee joined the organization after the start of the fiscal year.
  • LOP: If there are any LOPs in a previous payroll, the income tax computation considers the actual value, whereas the Annual Compensation page shows the full value.



    Example
    : If an employee joins the organization on 10th May, their salary for that month is calculated based on the total number of paydays (22 days). This is called the earning salary (actual value) for that month, whereas the employee compensation page shows the rate salary. The income tax computation page shows the salary as per the earning salary (actual value) along with the projected salary.